The property owner, Industrial Planning Associates, L.P., has submitted a petition to annex land to the City of Billings under Section 7-2-4600, MCA. The subject property is composed of two parcels totaling about 97 acres. The property is described as Tract 1, C/S 2587 and Tract 1, C/S 3329. It is located on the northwest corner of the intersection of Hesper Road and Gabel Road. The property is vacant but has been used for agricultural production in the past. The property owner is requesting annexation in order to obtain City services for development of the property for a trucking facility. Since the property would default to Residential-9600 (R-96) zoning if it is brought into the City, a concurrent zone change application is being processed to change the zoning from Agricultural Open Space to Controlled Industrial to accommodate the proposed commercial use. The property is located within the five-year annexation area of the City's Limits of Annexation Map and appears to meet many of the City's criteria in its Annexation Policy. The City Council must first act on the annexation request before considering the zone change application at this meeting. The City Council opened the public hearing to consider this annexation request and voted to continue the public hearing until its March 25 meeting.

The City Council may approve or deny a petition submitted by owners of 50% or more of the real property in the area to be annexed (7-2-4601 (3)(b), MCA).

The City can provide municipal sewer and water service to the subject property. The owner will be responsible for all costs of extending the utilities in Hesper Road. Staff is recommending a standard condition of approval for this annexation that a development agreement between the City and the property owner be executed to clarify how City services will be provided. If the proposed annexation is approved and the zoning is changed, the property is expected to be developed for commercial uses and will contribute additional tax revenue to the City.

The subject property is composed of two parcels totaling about 97 acres. It is located at the northwest corner of the intersection of Hesper Road and Gabel Road. The property is mostly vacant with a few out buildings and has been used for agricultural operations. The property owner is requesting annexation in order to obtain City services for development of the property for a trucking terminal facility. Since the property will default to Residential-9600 (R-96) zoning if it is brought into the City, a concurrent zone change to Controlled Industrial is being processed.

The property is located within the five year annexation area of the City's Limits of Annexation Map and appears to meet many of the City's criteria in its Annexation Policy. The City Limits are immediately adjacent to the subject property on the south, east and north.

PROCEDURAL HISTORY

• On January 8, 2013, the annexation petition was submitted to the Planning Division.
• On February 11, the City Council acknowledged receipt of the annexation petition and set a public hearing for February 25.
• On February 25, the City Council continued the public hearing for the annexation until its March 25 meeting.
• On March 25, the City Council will conduct the public hearing and may take action on the request.
• On April 8, if the resolution to annex is approved by the City Council, Council will conduct a public hearing and consider first reading of an ordinance to add the property to a City ward.
• On April 22, the City Council will conduct the second and final reading for the ordinance expanding the ward boundary.

Annexation by petition does not require notification of adjoining landowners; however, it does require that the City Council conduct a public hearing. Notice of the public hearing was posted on the property on February 8  and published in the Billings Times on February 7. The Planning Division has not received any inquiries about this petition at the time this memo was prepared. The City Council did take testimony at the public hearing at its meeting on February 25 but voted to continue the hearing to its March 25 meeting.

The City Council has expressed concerns regarding how annexing additional properties may affect the City’s ability to provide services to new developments without diminishing the services provided to existing City residents. To address these concerns, the City Council adopted an annexation policy that lists criteria for suitable annexations. The proposed annexation complies with the adopted Annexation Policy criteria as follows:

1. The area is located within the Limits of Annexation.
2. The City is able to adequately provide municipal water and sewer services. Sewer and water services will require extension of lines by the property owner in Hesper Road at the time of development.
3. Any proposed improvements to the property will meet City standards.
4. As part of a Development Agreement or Subdivision Improvement Agreement, the owners will sign a Waiver of Right to Protest the creation of any Special Improvement Districts.
5. If annexed, any proposed land use will comply with the zoning. Future development also may conform to the goals of the City of Billings and Yellowstone County Growth Policy.

Although MCA 7-2-4600 allows the municipality to waive the requirement of an annexation public services plan, it is the City’s custom for staff to prepare a brief analysis of predicted impacts to services and facilities. State law lists the required contents of a public services plan including a 5-year (minimum) plan that outlines how and when services and infrastructure will be extended to the annexed area and how they will be financed. This report follows that general format.

Departmental Response: City and County Departments were given the opportunity to comment on this annexation. City departments responded favorably and detailed responses are provided below. The County Public Works Department also responded to verify that all of Hesper Road will be annexed adjacent to the subject property. 

City Facilities: The following improvements and facilities are necessary to provide adequate services to the subject property.

• Water: service is available and a water main will need to be extended along Hesper Road to the subject property. The cost to extend water service for the property will be at the developer's expense.

• Sewer: The property may be served by the developer extending City sanitary sewer along Hesper Road. The cost to extend sewer service for the property will be at the developer's expense.

• Stormwater: There is a stormwater line in Gabel Road. Storm water impacts will be identified during the site development process and mitigating measures will meet the requirements of the City and the Public Works Department.

• Transportation: The subject property has frontage on Hesper Road and Gabel Road, which are both Principal Arterial Streets.  No issues have been identified by City Engineering or Street and Traffic staffs. Any specific traffic impacts will be identified during the site development process and mitigating measures developed at that time.

• Fire Stations: The subject property is currently served by the Billings Fire Department through the Billings Urban Fire Service Area and the Billings Fire Department will continue to serve the property upon annexation. The Billings Fire Chief stated that as this and other annexations are built out, additional fire department resources will be needed. The nearest fire station is Station #5, located at 604 South 24th Street West, about 2.3 miles northeast of the subject property.

• Parks: The subject property will be zoned Controlled Industrial if annexed and the zone change is approved. Park land dedication would not occur if this land is developed for a commercial use.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. A bike lane is proposed on both Hesper Road and Gabel Road when there are future improvements to Hesper Road or Gabel Road in this area.

General City Services: These are the City services that are provided to all residents and businesses in the City, such as police and fire protection, street and storm drain maintenance, and garbage collection and disposal. The service providers that responded did not object to the annexation of this property.

• Transit: MET transit system operators have no objections to the annexation request, but the nearest bus route follows King Avenuie West, about 1.4 miles north of the subject property. 

• Police: The Police Department states that the subject property is in an established patrol area, but as further annexation and development occurs, more resources will be needed. 

• Public Utilities: The Public Works-- Distribution and Collection Division had no objection with the annexation request as long as the owner agrees to fund the necessary water and sewer connection costs.  The owner must agree to a waiver of protest for future SIDs through a Development Agreement or Subdivision Improvement Agreement as a condition in the Annexation Resolution.

• Public Works -Street and Traffic Division: The Street and Traffic Division stated that it has no problems serving the property.

• Public Works-Solid Waste: The Solid Waste Division notes that it can serve the property when developed, but noted that Senate Bill 234 passed in the 2011 State Legislature dictates that it is up to the property owner as to whether the City or a private carrier collects solid waste from the property.

• Ambulance Service: The City does not provide ambulance service, however it does dictate the level of service provided by American Medical Response (AMR). By City ordinance, 90% of ambulance calls must be answered within 8 minutes; this annexation is within the area of acceptable response time.

• Legal and Finance: General Fund services, such as the Legal and Finance Departments should not be negatively impacted by this annexation. The Finance Department responded that it did not see any issues with the petition request.

• Other Departments: City/County services including Library, Planning, and Environmental Health are only slightly affected by the annexation since they will continue to serve new development whether it is in the City or in the County.

Annexation of this property would adhere to the following goals, objectives and policies of the Yellowstone County and City of Billings 2008 Growth Policy:

• Predictable land use decisions that are consistent with neighborhood character and land use patterns. (Land Use Element Goal, page 6)
• Limit regional commercial centers to areas having efficient and direct access to Interstate 90 or other regional corridor (Planned Growth Goal, page 18)

The West Billings Plan identifies this area for commercial development. A preferred land use map was developed for the West Billings Plan locating neighborhood, community and regional commercial nodes at major arterial intersections. The plan indicated this area near the Shiloh Road/I-90 interchange should serve as a regional commerce center. The plan describes this center as an area intended to serve the entire Billings community and beyond. It designates the regional center to be located where it will have direct and efficient access to Interstate 90.